The government aims to fast-track legislation to untie the Czech central
bank’s hands to be active in the bond market. But Prime Minister Andrej
Babiš (ANO) told MPs on Tuesday that does not mean any immediate
The Finance Ministry said in a document accompanying the bill that the government was just fast-tracking, as part of its response to the coronavirus pandemic, Reuters reported.
The amendment widening the central bank’s powers to buy securities on the market does not alter a ban on monetary financing nor allow the central bank to enter the primary government debt market.
The Finance Ministry plans to issue government bonds worth 33 billion crowns in April. As of December, it had planned to issue medium- and long-term bonds worth at least 120 billion crowns on the domestic market in 2020.
Bank card data collected last week show that a large number of Czechs
quarantined after returning from Italy or some other high-risk destination
do not respect the restriction.
The data collected by the initiative COVID19CZ showed that 46 percent of Czechs back from holidaying in a high risk destinations violated their quarantine at least on one occasion, using their card to pay in restaurants or shops, according to Petra Bednaříková from DataSentics.
According to the news site Seznam.cz, data from bank cards may be used to map quarantined people’s movements, similarly as is happening with mobile phones.
ING’s latest economic and financial analysis on the economic costs of Covid-19 predicts the Czech Republic will show negative GDP for full-year 2020. The volatility of the Czech crown will remain “extra elevated”, it says, given the positioning-related moves in the currency and the risk of central bank interventions.
The Czech government and central bank have announced further measures to offset the impact of the coronavirus on large firms, small businesses and households. While economic growth is certain to drop steeply in the near term, the authorities and experts note this country is better prepared than most to weather the storm.
The Bank Board of the Czech National Bank has adopted measures to mitigate
the impacts of the coronavirus epidemic on Czech firms, businesses and
At its monetary policy meeting on Monday, the Bank Board lowered the two-week repo rate by 50 basis points to 1.75%.
At the same time, it lowered the Lombard rate to 2.75% and the discount rate to 0.75%. The vote was unanimous.
The change in rates takes effect on Tuesday, March 17, 2020.
In addition, the Bank Board declared that it was ready to cut interest rates further should the economic situation so require.
The Czech finance minister has said the government’s proposal to introduce a digital tax could be postponed till next year and the proposed tax could be cut from 7 to 5 percent. The statement comes following a warning from the US ambassador to Prague about possible retaliatory measures by the Trump administration and concerns voiced by leading Czech exporters who fear damage to Czech-American business relations.
Czech researchers develop top-grade respirator for 3D printing
“I am taking it minute by minute” – Foreigners in the Czech Republic on quarantine and being cut off from their families
Why Chinese masks destined for Italy were seized (not ‘stolen’) by Czech authorities
A mask-tree as a form of solidarity
Coronavirus: Czech scientists focus on role proteins play in spreading COVID-19